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Allegheny (ATI) Provides Update on Q1 Financial Performance

Allegheny Technologies Incorporated ATI recently provided updates on first-quarter 2019 financial results. The company projects first-quarter earnings per share (EPS) in the range of 10-13 cents. Total sales are forecast to be around $1 billion for the quarter.

Notably, projected EPS figure is sequentially lower than fourth-quarter 2018’s tally of 30 cents. Per the company, financial results in the first quarter were dented by operational headwinds in both business segments.

The High Performance Materials and Components (HPMC) unit was affected by greater-than-expected persistent disruptions in third party nickel powder billet supply. Also, higher operating costs arising from the accelerated ramp up of nickel powder production and the temporary margin compression have hurt the segment’s performance.

Allegheny believes that negative impacts in the segments may lessen during the second quarter. The company does not expect these issues to hurt financial performance in the second half of 2019. It is proactively working with customers to jointly address the current supply constraints associated with the ongoing aerospace production ramp up.

Shares of Allegheny have inched up 1% in the past year, against the industry’s 1.2% decline.